The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 11 JULY, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-07-10

Item

Price

Unit

Fluctuation

Date

PSF

1016.53

USD/Ton

0%

7/10/2016

VSF

2059.97

USD/Ton

0.58%

7/10/2016

ASF

1883.57

USD/Ton

0%

7/10/2016

Polyester POY

1027.00

USD/Ton

-0.15%

7/10/2016

Nylon FDY

2167.61

USD/Ton

0%

7/10/2016

40D Spandex

4260.47

USD/Ton

0%

7/10/2016

Nylon DTY

5574.48

USD/Ton

0%

7/10/2016

Viscose Long Filament

1248.24

USD/Ton

0%

7/10/2016

Polyester DTY

2025.59

USD/Ton

0%

7/10/2016

Nylon POY

2055.49

USD/Ton

0%

7/10/2016

Acrylic Top 3D

1139.11

USD/Ton

0%

7/10/2016

Polyester FDY

2391.84

USD/Ton

0%

7/10/2016

30S Spun Rayon Yarn

2690.82

USD/Ton

0%

7/10/2016

32S Polyester Yarn

1666.81

USD/Ton

0%

7/10/2016

45S T/C Yarn

2399.31

USD/Ton

0%

7/10/2016

45S Polyester Yarn

1778.93

USD/Ton

0%

7/10/2016

T/C Yarn 65/35 32S

2690.82

USD/Ton

0%

7/10/2016

40S Rayon Yarn

2825.36

USD/Ton

0%

7/10/2016

T/R Yarn 65/35 32S

2167.61

USD/Ton

0%

7/10/2016

10S Denim Fabric

1.33

USD/Meter

0.11%

7/10/2016

32S Twill Fabric

0.80

USD/Meter

0%

7/10/2016

40S Combed Poplin

1.14

USD/Meter

0.13%

7/10/2016

30S Rayon Fabric

0.67

USD/Meter

0%

7/10/2016

45S T/C Fabric

0.66

USD/Meter

0%

7/10/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14949 USD dtd. 11/07/2016)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Domestic textiles market expected to grow 7-8% in FY17

The onset of good monsoon and Government initiatives, the domestic textile market may grow by 7-8 percent, which was estimated at USD 60 billion in FY17, said Confederation of IndianTextile Industry (CITI) Chairman Naishadh Parikh. While, the textiles exports, estimated at USD 40 billion, is likely to expand by 5-8 percent this fiscal. Parikh, welcoming the new Textiles Minister Smriti Irani, said that the appointment of a dynamic, progressive and result-oriented Cabinet Minister like Irani comes at an opportune time when the industry is poised to turn “Make in India” into a reality. The apex chamber of textiles in India hoped the industry will achieve the ambitious goal of creating 5 crore jobs in the next few years. Also the recent initiative announced by Government should further strengthen the textile value chain. India is the second fully integrated textile value chain, next only to China, and industry is looking forward to initiatives to further bolster the sector in view of large investments taking place in Bangladesh and Vietnam towards verticalization of the industry.

SOURCE: Yarns&Fibers

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Ease clearances & take on competition, Smriti Irani directs officials

Within days of taking over as textile minister, Smriti Irani has drawn up an ambitious agenda for the department. "The plan is to have a single-window clearance system wherever possible to reduce paperwork and streamline processes... so that the domestic industry can focus on competition," said an official with knowledge of the plan. The government had announced a Rs 6,000-crore package for the industry on June 22, about two weeks before PM Narendra Modi moved Irani to textiles from human resource development (HRD) in a ministerial reshuffle. The new textile minister has begun meeting industry representatives and other stakeholders since facilitating trade to promote textile exports is high on her agenda, said officials. While taking charge, Irani had flagged support for weavers and skilling programmes to boost exports as focus areas. Once an industry central to India's economy, the sector has been hit by labour trouble, lack of competitiveness, global trade quotas and other factors. It's still got heft. The textile industry contributes 14 per cent to industrial production, almost 4 per cent to India's GDP and accounts for 13 per cent of the country's export earning, directly employing more than 45 million. It's the biggest employer in the country after agriculture and the government feels it has the potential to become a massive generator of new jobs. India's textile exports fell to $40 billion in FY16 from $41.4 billion in the year before. A key concern for industry is simplifying and easing environmental and effluent approvals for processing units, seen by some as a time-consuming process that holds back investments. "A processing unit needs permission from the Central Pollution Control Board and state pollution control boards and these take almost three years," said textile expert DK Nair. "Also, India's zerodischarge norm is stricter than the ones in the US and Europe." The recently announced package includes a measure of labour reforms to help make the sector competitive after losing ground to countries like Bangladesh and Vietnam on the export front. Irani's immediate task will be to pilot the package and speed up the textile policy that is in the works. "There needs to be more appetite for foreign investment in textiles since FDI in the sector is quite low," said an expert on condition of anonymity.

 

SOURCE: The Economic Times

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Post Brexit, FTA with Britain will be fresh exercise: Nirmala Sitharaman

Union Commerce and Industry Minister Nirmala Sitharaman on Saturday said post Brexit, free trade agreement (FTA) with Britain will be a fresh exercise and work on FTA with EU will continue with a recalibrated approach. The minister held a bilateral meeting with visiting British Secretary of State for Business, Innovation and Skills Sajid Javid to talk about trade in goods and services and investments. Sitharaman said the Indian government has invited the chief negotiator from the British side to engage with their chief negotiator to take forward the entire process. "During the meeting, both the leaders discussed issues of mutual interest. Both sides expressed hope to take proactive steps to deepen their ties and engagement in near future. Several issues related to bilateral trade and investment were discussed," a statement said.

SOURCE: The Economic Times

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India sets up apparel training centre in Nigeria

India has setup an apparel training centre in Nigeria to promote skill development in the textile sector there, the government said. "An apparel training centre has been established in Kaduna, Nigeria under the Cotton Technical Assistance Programme for Africa," the commerce department said in a release. This is a first of its kind centre in Nigeria set up in partnership with Nigeria and coincides with Prime Minister Narendra Modi's ongoing four nation visit to Africa. "The centre is aimed to support and catalyze the initiative of Nigeria in realizing the objectives to rebuild the cotton and textile value chain and address the need for skilled workforce for domestic as well export-oriented apparel industry in the West African region," the government said. India-Nigeria bilateral trade declined to $12.17 billion in 2015-16 compared with $16.36 billion in 2014-15. India exports pharmaceuticals, chemicals, machinery, transport equipment and electronic goods to Nigeria while the major items of import are petroleum, crude, non-ferrous metals, wood and wood products and, cashew nuts.

SOURCE: The Economic Times

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PM Modi stresses on industry-to-industry ties with South Africa

Prime Minister Narendra Modi on Friday laid emphasis on industry-to-industry ties between India and South Africa for greater economic gains. "Industry-to-industry ties can bring rich economic gains, give new shape to our partnership and help us play a robust regional and global role," Modi said in a joint press statement with South African President Jacob Zuma following delegation-level talks between the two sides here. Modi said that in the last two decades, the relationship between the two countries has been a story of strong advances and concrete achievements. "Two-way trade has grown by over 300 per cent in the last 10 years. Indian companies hold strong business interests in South Africa," he said. The Prime Minister said that one-fourth of India's investments in Africa were in South Africa. "And there is potential to expand our business and investment ties further, especially in the areas of mineral and mining, chemicals and pharmaceuticals, high technology manufacturing and information and communication technology," he said. Modi also thanked South Africa for its support for India's bid for membership in the Nuclear Suppliers Group (NSG). In his remarks, President Zuma said that over 100 Indian companies were operating in South Africa and they were playing a "significant role" in the country's economy and job creation. "We are looking to diversify South Africa's exports to India," he said. Zuma cited defence sectors, deep mining and renewable energy as areas of bilateral cooperation. According to him, water management, pharmaceuticals and infrastructure development are areas that hold potential in the future. Modi arrived in South Africa from Mozambique on Thursday on the second leg of his four-nation tour of Africa. This is Modi's first visit to mainland Africa and is also the first prime ministerial visit from India to South Africa since the then Prime Minister Manmohan Singh arrived in 2013 for the G20 summit in Durban. Apart from Mozambique and South Africa, Modi will also visit Tanzania and Kenya.

SOURCE: The Economic Times

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From more reforms to night shift for women, Textiles Secy Rashmi Verma explains agenda

Days after the government announced some crucial labour reforms for the garment sector, including the introduction of fixed-term employment and wage parity between contractual and permanent staff, and handed over a Rs 6,000-crore special package, textiles secretary Rashmi Verma says her ministry has written to chief secretaries of states to bring about further labour reforms and allow women to work in garment factories at night. In an interview to Banikinkar Pattanayak, she adds the government is working on proposals to make exit easier for companies, which will help sick textile or garment factories wind down easily. Excerpts:

The Rs 6,000-crore package for the garments sector is aimed at creating 10 million new jobs, $30-billion additional exports (over and above $40 billion in 2015-16) and Rs 74,000-crore investments over the next three years. Are these targets too lofty to be realised?

The targets are realistic. We have calculated 70 jobs on an investment of Rs 1 crore, which is actually a conservative estimate, as the jobs created in the garment sector is normally much higher than this. In fact, in SSI units, it’s 200 on an investment of Rs 1 crore. Only in the organised sector, it’s a little less. But of course, the entire package needs to be implemented in totality for the targets to be realized. Also, when we are talking of jobs and Rs 74,000 crore investment, we are also talking about signing some free trade agreements, like the one with the EU, and the review of certain existing free trade agreement (to suit our interests). So these things are factored in while setting the targets. And if we are able to forge some of the FTAs, like the one with the EU, then certainly, we are going to even exceed the targets. But even without these FTAs, we are hopeful of achieving at least the employment generation target.

Given that the balance sheets of companies are highly stressed and global trade growth forecasts remain weak, will the investment targets be achieved?

Under the Amended Technology Upgradation Fund Scheme, we have raised the (capital) subsidy for the garment sector to 25%, compared with 15% now. So that’s a huge incentive for investment. Also, the industry is highly labour-intensive, and there,too, we are giving support in terms of reimbursing the entire 12% contribution by the employer towards the Employees’ Provident Fund. This will reduce the companies’ wage bill. We are providing some relief in income tax as well, and the duty drawback covering even state levies is a very big incentive (this will cost the exchequer an estimated Rs 5,500 a year). These steps will drive down our cost of production and make our garments more competitive in the global markets vis-à-vis Bangladesh’s or Vietnam’s.

Are the pledges by garment exporters (38 exporters committed to invest only Rs 710 crore and give jobs to 37,720 people in less than a week after the announcement of the package) a muted response?

It’s not really muted, garment players have welcomed the package. It will give a boost to the sector. But yes, they are also looking forward to the FTAs, PTAs etc, which will finally make them truly competitive in the international market.

Now that some important labour reforms are announced, will women also be allowed to work at night at apparel factories?

This is a state subject. So we have written to chief secretaries of various states to allow night shifts for women after ensuring all security and other necessary requirements. Some states like Tamil Nadu, Maharashtra and Gujarat have already allowed night shifts for women. This is a very big measure that boosts earnings of women, who constitute 70% of the garment sector workers.

Will the government amend the archaic Section 25-O of the Industrial Disputes Act to make it easier for sick units close easily, albeit after paying adequate compensation to workers?

In fact, this is being looked into by the department of industrial policy and promotion, as a part of the ‘ease of doing business’ initiatives. The issue of easier exit for companies has been discussed at the highest level — by a committee chaired by the Cabinet secretary as well. So the issue is well under consideration.

When will the fine-prints of the special package be notified?

Fine prints will be out within a couple of months. It will be just specifying the guidelines, etc. But the intention and various aspects of the scheme have already been explained to the (export promotion) councils and they are happy about it.

SOURCE: The Financial Express

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India backs African countries’ demand for curbs on cotton subsidies at WTO

India is backing major cotton growing African countries in their demand for immediate elimination of cotton export subsidies and a timeline for reduction of domestic support by heavily subsidising members such as the US. This was agreed to at the World Trade Organisation’s Ministerial meet in Nairobi last December. “While the four cotton growing African countries (C4) are leading the demand for reduction and elimination of cotton subsidies, India, too, is supporting the cause as its cotton farmers are adversely affected by cheap subsidised cotton from the West both in the domestic and export market,” an official keeping track of the on-going negotiations on agriculture at the WTO told BusinessLine . At a meeting in Geneva earlier this month, New Delhi, which supports its cotton farmers through a minimum support price (MSP), had underscored the importance of focussing on how much support individual farmers get. “India said that countries should give information on support per farmer, the average earnings of farmers and the average size farm holding to ensure that all are not painted by the same brush,” the official added. In the last nine years, of the $47 billion handed out as cotton subsidies by major players, over $24 billion has been given by the US, $15 billion by China, $7 billion by the EU and less than $1 billion by India, according to figures compiled by international think-tank Africa Europe Faith and Justice Network.

Interestingly, Nobel laureate economist Joseph E Stiglitz, at an event in Bengaluru last week, said that the Modi government, like Brazil, should drag the US to the WTO for subsidising its cotton farmers as it was one of the countries worst affected by it. While India may not have any immediate intention of taking on the US individually on the matter, it is adding its voice to that of the C4 (Burkina Faso, Benin, Chad and Mali) which have pleaded that domestic support programmes of major producers need to be slashed as these were forcing thousands of young cotton farmers in their countries to turn to migration in order to earn a living. The countries asked members to explain how they intend to implement the Nairobi decision on cotton under the three pillars of export competition, market access and domestic support. The US is not just one of the biggest subsidy providers but is also the largest exporter of cotton. According to the National Cotton Council of America, the US is expected to export 10.2 million bales in 2016 capturing almost 30 per cent of world trade in cotton of 35.8 million bales, while India would export half of that at 5.4 million bales.

SOURCE: The Hindu Business Line

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UK Business Secretary meets Jaitley, Sitharaman to fast track FTA talks

British Business Secretary Sajid Javid has embarked on a hurricane trip to India to initiate free trade agreement (FTA) talks with India. He met Ministers of Finance and Commerce and Industry Arun Jaitley and Nirmala Sitharaman respectively, in an effort to launch negotiations for a free trade agreement (FTA) with India.

Initial discussions

“Following the referendum result, my absolute priority is making sure the UK has the tools it needs to continue to compete on the global stage. That is why I am in India today to launch these initial trade discussions. There is a strong bilateral trade relationship between our countries and I am determined that we build on this,” he said in a statement issued by the UK’s Department for Business, Innovation and Skills. However, it was learnt that he has urged India to wrap-up the talks “quickly” and not take years to negotiate the deal, even as it is yet to firm up who will be their chief trade negotiator, sources told BusinessLine . The British government is also aiming to ramp up its trade department by inducting 300 specialist staff by the year-end. UK’s plan is to implement the trade deal as soon as the formal process of its exit from the EU takes place, which may take up to two years. India has been negotiating a FTA with EU since 2007. So far 15 rounds of negotiations have taken place on the trade deal, which is also known as the Bilateral Trade and Investment Agreement (BTIA). The negotiations have missed several deadlines and are currently deadlocked.

Indian investments invited

During his discussions with Jaitley and Sitharaman, he also apprised them of how Britain plans to approach its business and economic ties with its partner countries even as he urged investments from Indian industry, according to sources. According to a recent survey by FICCI, Indian investments to UK are likely to plummet following its exit from the EU. A team of business leaders under the Confederation of Indian Industry (CII) had visited UK from July 5-7 to explore the business environment. After the day’s trip to India, the Business Secretary headed to China, Japan and South Korea.

SOURCE: The Hindu Business line

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Anti-dumping duty imposed on PTA imports from 5 countries

Domestic producers of purified terephthalic acid (PTA), a key raw material for manufacture of polyester chips, have cause for cheer with the Finance Ministry imposing definitive anti-dumping duty on its imports from China, Iran, Taiwan, Indonesia and Malaysia. This Revenue Department move – which came less than a month after the recommendation of the designated authority in the Commerce Ministry — is expected to come as a relief for Reliance Industries and Indian Oil Corporation.

Wide applications

PTA – a white, free flowing crystalline powder – is the primary raw material for the manufacture of polyester chips which in turn is used in a number of applications in textiles, packaging, furnishings, consumer goods, resins and coatings. MCC PTA India Corp Pvt Ltd and Reliance Industries Ltd had filed the petition seeking levy of anti-dumping duty on PTA imports from these countries. Indian Oil Corporation had supported the petition. Based on the recommendations of the designated authority in its final findings, the Revenue Department has imposed anti-dumping duty that ranged from $83.08 per tonne to $168.76 per tonne depending on the producer and country of export. The duty has been levied for five years effective from December 10, 2015, the date on which the provisional duty was imposed. In the case of China, the Revenue Department has levied anti-dumping duty of$ 95.70 per tonne on PTA produced by BP Zhuhai Chemical Company Ltd and exported by BP Asia Ltd, Hong Kong. For all other producers and exporters of PTA from China, the duty has been pegged at $97.60 per tonne.

In the case of Indonesia, a duty of $83.08 per tonne has been imposed on PTA produced by BP Petrochemicals and exported by BP Asia Ltd, Hong Kong. For all other producers and exporters of PTA from Indonesia, the duty has been pegged at $168.76 per tonne. For Taiwan, a duty of $136.72 per tonne on PTA produced by China American Petrochemical Co Ltd, Taiwan and exported by BP Asia Ltd, Hong Kong has been imposed. For PTA produced and exported by Formosa Chemicals & Fibre Corporation, Taiwan, the duty has been pegged at $ 85.87 per tonne. For all other producers and exporters of PTA from Taiwan, it is $153.60 per tonne. While PTA imports from Iran will now attract anti-dumping duty of $102.86 per tonne, the duty in the case of PTA imports from Malaysia has been pegged at $98.48 per tonne.

SOURCE: The Hindu Business Line

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India extends $92 million Line of Credit to Tanzania

Seeking to enhance its ties with resource-rich Tanzania, India on Sunday extended its support to the former to meet its development needs and signed five agreements, including one for providing a line of credit of $92 million in the water resources sector. Describing India as a trusted partner in meeting Tanzania’s development priorities, Prime Minister Narendra Modi said he along with President John Pombe Joseph Magufuli “agreed to deepen our overall defence and security partnership, especially in the maritime domain.” “Our in-depth discussions on regional and global issues reflected our considerable convergence on issues of common interest and concern,” he said. “India’s cooperation with Tanzania will always be as per your needs and priorities,” Modi said at a joint press interaction after his bilateral meeting with President Magufuli. The two sides signed an agreement under which India will provide a line of credit of $92 million for rehabilitation and improvement of Zanzibar’s water supply system. Other agreements signed include an MoU on water resource management and development, MoU for establishment of vocational training centre at Zanzibar, MoU on visa waiver for diplomatic/official passport holders and an agreement between National Small Industries Corporation of India and Small Industries Development Organisation Tanzania.

In Nairobi

Later in the day the prime minister visited Nairobi, the capital of Kenya, where he described terrorism as one of the two major challenges facing the world. Modi said all forces believing in humanity must come together to defeat this “anti-humanity” menace. Kenyan President Uhuru Kenyatta accompanied Modi to the Kasarani Stadium where he addressed a gathering of around 20,000 Indians and people of Indian origin, soon after his arrival from Tanzania.

SOURCE: The Business Standard

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Govt to firm up strategy on GST

Ahead of the monsoon session of Parliament, beginning next Monday, this week will see all the give-and-take, firming up of positions, and negotiation for the legislative work during the session. The government will firm up its strategy for the passage of the goods and services tax (GST) Bill in the Rajya Sabha this week. The strategy will have two components: Passing GST with the Congress; and what to do if the Congress opposes the Bill in its current form. The government will also work on the All Indian Anna Dravida Munnetra Kazhagam, which is also opposed to GST. Congress Vice-President Rahul Gandhi has returned from his foreign sojourn and is likely to act on a number of pending issues this week, including whether his sister Priyanka will be the face of the Congress or not. No, say Congress functionaries in the party. Yes, say supporters and followers of strategist Prashant Kishor. This week will also see the forming of electoral allies in Uttar Pradesh. The tricky question is whether to send feelers to Bahujan Samaj Party leader Mayawati who is losing one leader every day. But then again, will BSP votes (which used to be Congress' votes earlier) transfer to the Congress? And, will this not mean an existential threat to the BSP? These discussions are likely to go on all through the week.

Discussions on upcoming elections in four states, including Uttar Pradesh, and steps to spread Rashtriya Swayamsevak Sangh (RSS) programmes are likely to be the focus of the five-day annual meeting of it's regional office-bearers starting here on Monday. According to sources, the Assembly polls in Uttar Pradesh, Himachal Pradesh, Uttarakhand and Punjab, slated for next year, are likely to be discussed in detail and a strategy would be chalked out to ensure the BJP's victory in the elections at the meeting, which is an annual affair. RSS chief Mohan Bhagwat, General Secretary Bhaiyyaji Joshi and 41 regional pracharaks have arrived in the city for the annual meeting, Prant Prachar Pramukh Mohan Agarwal said on Sunday, adding that informal meetings are going on among the leaders. The sources said BJP National General Secretaries Ram Lal and Ram Madhav might participate in the meeting.

An echo of the Agusta Westland helicopter deal is likely to be heard in distant Chhattisgarh. The monsoon session of the legislative Assembly will begin on Monday and end on July 19. At a strategy session of the Congress Legislature Party attended by, among others, Renu Jogi, the wife of Ajit Jogi who has walked out of the Congress and formed his own party, the Congress decided it would raise drought, Agusta Westland, and seven other issues against the Raman Singh government. In the Maharashtra Vidhan Sabha, which is beginning its monsoon session from July 18, "corruption" by former state revenue minister Eknath Khadse will be the Congress' "top priority" to corner the BJP-led government. The party has formed a 15-member panel of legislators to chalk out the strategy to be adopted on the floor of both Houses. The party has designated four former ministers to dwell upon issues which they had handled during the previous Congress-NCP government."Former revenue minister and senior BJP leader Eknath Khadse's corruption will be on top priority of the party," said former Maharashtra Pradesh Congress Committee president Manikrao Thakre.

SOURCE: The Business Standard

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India explores Iran textile market

To reduce their dependence for growth on the European Union (EU) and American markets, Indian garment exporters are exploring business opportunities with Iran. A commerce ministry delegation, accompanied by half a dozen industry officials, recently went to Iran and discussed various issues in this regard. Owing to preferential treatment for Pakistan, Vietnam and Bangladesh, textiles shipments to America and the EU, the traditional buyers, is becoming uncompetitive for Indian exporters. Our exports in the segment have been falling for some years. “We are exploring new markets, to reduce our dependence on these two regions,” said Rashmi Verma, secretary, ministry of textiles. After setting a target of $47.5 billion at the start of the season, exports were no more than $38 billion for financial year 2015-16, from $40 billion the previous year. With a host of incentives and a Rs 6,000 crore package announced in the past few months to boost textile and apparel exports, the government has set a target of $50 billion for 2016-17. “China’s market share in the world’s textile and apparel segment has declined to 38 per cent, from 40 per cent a couple of years ago, due to higher labour cost. India can exploit this, to increase its market share from the existing five per cent,” said Verma. “The targets look achievable,” said Rahul Mehta, President, Clothing Manufacturers Association of India. He noted the market in Iran was $16 billion, of which 40 per cent came from domestic sources. The rest was met through import. India has been absent from there, due to an extremely high import tax by the Iranian government. This was 200 per cent on apparel and textiles until two years earlier; now, this is 55 per cent and 32 per cent, respectively. After the Indian delegation’s visit, Iran has agreed to reduce these to 20-25 per cent or even less in two years. “Iran offers immense of opportunities for our export, with a combination of western and traditional taste,” said Mehta. India explores Iran textile market America and the EU together take a little over 60 per cent of India’s textile and apparel export. R K Dalmia, head of the Cotton Textile Export Promotion Council, forecasts India’s textile export to rise at a compounded annual rate (CAGR) of nine per cent to $62 billion in five years, from $40 billion in 2016 (he quoted an Ernst & Young study). And, the domestic market is set to grow at a 5.2 per cent CAGR to $80 billion by 2021, from $62 billion in 2016.

SOURCE: The Business Standard

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India one of the most open economies: Modi

Presenting India as the one of the most open economies, Prime Minister Narendra Modi today invited South African businesses to participate in its transformation march and tap the huge opportunities by enhancing investment and diversifying the basket of trade. Addressing top business leaders of India and South Africa here, he invoked the "greatest leaders" Nelson Mandela and Mahatma Gandhi to underline the historical ties and asked the companies to take advantage of the geographical links as well. Modi said South African business excellence and Indian capacities must leverage each other for growth and development in our two countries. Out to hardsell India, he described the country as "a bright star in the global economy" as he referred to its high growth rate of 7.6 per cent and spoke about efforts to improve 'ease of doing business' in an environment-friendly manner. "Our leaders like Nelson Mandela and Mahatma Gandhi brought political freedom for us. Now, it is the time to work for economic freedom. Thus, our relations rest upon our common desire to fulfil the aspirations of our people," Modi told the business meet attended by South African President Jacob Zuma as well as about 500 top captains of business and industry. "We have been friends in adversities. Now we should franchise in opportunities," he added.

Talking about the opportunities, Modi said, "India today is among the most open economies. We have liberalised our FDI regime in most of the areas and in all possible ways. We have rationalised our norms and made it simple for businesses to establish and grow." Emphasising that the "scope is tremendous", he said, "The potential is increasing day by day. This is because both countries are strengthening their economic fundamentals. Therefore, we must look at ways to diversify our trade basket, to complement our needs and to serve the people. Amid India's keenness to make inroads in resource-rich Africa where China has already taken a big lead, Modi apparently drew a contrast between the two models of business, saying "We have always believed in nurturing and nourishing not in exploiting." In this context, he invoked Mahatma Gandhi, saying his philosophy was to see everybody satisfied. The Prime Minister said his advise to Indian companies doing commerce in Africa was that "the spirit of African humanism , UBUNTU, should reflect" in their business ethos.

"For Indian companies, South Africa is a home in this continent. Many leading Indian companies have a foot-print here. They are engaged in a wide range of activities. Many Indian CEOs are here with us. My advice to them is to see that their business results into socio--economic transformation of this great country," he said. "I have been advocating three 'P's for India -- Public Sector, Private Sector and People's Partnership. I have been emphasising on the Personal Sector. The same applies here. Skill development and community empowerment should be central to your business plans," he said. Modi said it was encouraging to see that the business engagement between India and South Africa was not one way. "South African companies are also active in India. Many of them have presence on ground. We have learnt from your knowledge and benefited from your innovative products," he said.

Talking about the steps taken by his government over the last two years to attract more foreign investment, like easing of norms and regulations, Modi said "all this is having a good impact on expansion of job market and rise in purchasing power of the people. This finally leads to India becoming a place with better quality of life and higher living standards." He said his government has ensured that "our growth is inclusive and embraces both rural and urban communities. We are taking a leap towards next generation infrastructure in both core areas and social sectors. Emphasising the "unique" complementarities, Modi said socio-economic challenges of both India and South Africa are more or less same. "My advice is that the wheels of development should not be re-invented," he said. The Prime Minister said both the countries have immense natural resources and there is a need to properly harness them and to use them sustainably for welfare of the common man. "We can learn a lot from each other in this," he said. "We particularly want to engage with your world class mining companies. Some of them are already active in India. But we want strategic engagements on this front. Our interest in this sector is not one sided," Modi told the South African business leaders. Secondly, the challenge of climate change and the need of fast track development is before both the countries, he said. "We are both committed to clean and green pathways to progress. At the same time, we need energy resources," he said. "Our two countries have the unique benefit of opposite seasons. When it is summer or mango season in India, it is winter here, and vice versa. We can leverage this geographic advantage to market each other's fruits, vegetables and other perishables," he said.

Pointing out that India has huge domestic market which offers massive opportunities for South African food processing industry, Modi said, "Our collaboration in this sector will bring value for our farmers and our villages." He said India is working on very ambitious plans of infrastructure, a "task which is pending from the days of Independence has to be completed fast now," an apparent dig at the previous governments. "Together, we can do a lot to fill these gaps. India is best suited to help you in technology and skills. Efforts are already underway in these areas," the Prime Minister said. He said India and South Africa can work together in a number of areas, from defence to dairy; from hardware to software; from medicines to medical tourism; from soft skills to science and technology. "There are opportunities for us." He thanked the South African government for introducing 10-year BRICS visa for regular business travellers, saying the Indian industry is quite encouraged by the move. "In February this year, we launched our e-Visa programme for South Africa. This is valid for short term tourist and business travellers. You can now get your visa for India sitting at home in your email, and that too free of cost," he added.

Earlier, the South African President Zuma said economic power in the world was still very much imbalanced between developed and developing countries. "We have to take our destinies into our own hands," Zuma said. "Our two countries hold tremendous economic opportunities which must be unleashed through the India-SA Forum. "We need to explore ways and means of increasing and diversifying our trade initiatives in the different economies," he said. Zuma said the two countries were major players in the global economy and in shaping the global economy through organisations such as IBSA and BRICS. "We have set an ambitious target of increasing bilateral trade to the level of USD 18 billion by 2018," Zuma said, adding that a South-Africa-India Joint Trade Committee would be set up to supplement existing platforms. Modi and Zuma also heard inputs from the South Africa- India CEOs Forum, which met earlier in the day. Vivian Reddy, South African co-chair of the Forum, which has met for the first time in five years, said that the Forum would play a crucial role in improving trade between the two countries. "South Africa provides the most viable base for exports into sub-Saharan Africa for India," Reddy said, adding that the Forum would be the midwife for Indian business on the African continent. Adi Godrej, Indian co-chair of the Forum, said both Indian and South African members of the Forum had decided to ramp up business amid the renewed sense of optimism among Indian business because of the reforms in India in the past two years.

SOURCE: The Business Standard

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The Indian Texpreneurs Federation want govt to fix segment wise target for textile industry

The Indian Texpreneurs Federation want the Centre to fix export targets for each segment of the textile value chain so that the industry moves towards achieving the 300 billion dollars of exports target by 2024-2025. In a memorandum to the new Union Textile Minister Smriti Irani, the association said that segment-wise targets will help the industry and the Government identify areas with scope for increase in exports. For instance, Bangladesh was reducing import of yarn and purchasing more fabric. Currently, India has over 60 per cent market share in yarn exports to Bangladesh and just 12 per cent share in fabric exports. India should look at capturing the potential for fabric in Bangladesh. Markets such as Russia had huge prospects for the Indian textile industry. While Russia imports Rs. 65,000 crore worth textiles, Indian exports just Rs. 500 crore worth textiles to Russia. In the last two months, cotton prices in the country have shot up by 35 per cent and this has hit the entire textile chain. The ministry need to focus on export trade growth and co-ordinate with the industry for this.

SOURCE: Yarns&Fibers

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Global Crude oil price of Indian Basket was US$ 43.29 per bbl on 08.07.2016

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 43.29 per barrel (bbl) on 08.07.2016. This was lower than the price of US$ 45.17 per bbl on previous publishing day of 07.07.2016.

In rupee terms, the price of Indian Basket decreased to Rs. 2920.05 per bbl on 08.07.2016 as compared to Rs. 3049.16 per bbl on 07.07.2016. Rupee closed stronger at Rs 67.46 per US$ on 08.07.2016 as against Rs 67.50 per US$ on 07.07.2016. The table below gives details in this regard:

Particulars

Unit

Price on June 8, 2016 (Previous trading day i.e. 07.06.2016)

Pricing Fortnight for 1.07.2016

Crude Oil (Indian Basket)

($/bbl)

43.29             (45.17)

46.34

(Rs/bbl

2920.05       (3049.16)

3127.02

Exchange Rate

(Rs/$)

67.46             (67.50)

67.48

 

SOURCE: PIB

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G20 nations agree to improve trade governance to halt slowdown

The world’s top 20 economies today agreed to improve international trade governance in view of the global slowdown due to increasing anti-trade measures that have become more universal since 2009. G20 nations, which account for 85 per cent of the world trade, would remain committed to an open global economy, and will further work towards trade liberalisation and facilitation, said a statement released following the two-day G20 Trade Ministers Meeting in Shanghai. The World Trade Organisation (WTO) statistics showed that global trade growth has slowed significantly since 2008, from an average of over 7 per cent per annum between 1990 and 2008, to less than 3 per cent between 2009 and 2015. Last year marked the fourth consecutive year with global trade growth below 3 per cent. The meeting endorsed the G20 Strategy for Global Trade Growth, in which the economies will lead by example to lower trade costs, harness trade and investment policy coherence, boost trade in services, enhance trade finance, promote e-commerce development and address trade and development, state-run Xinhua news agency reported.

The WTO unveiled a new trade-related index called the World Trade Outlook Indicator (WTOI) on Friday ahead of the meeting, which is designed to provide real time information on trends in global trade. The current reading suggested that trade growth will remain weak into the third quarter of 2016. Also, G20 economies vowed to support low-income countries (LICs) to participate more in global value chains (GVCs) to drive global trade growth, it said. The G20 economies recognised that GVCs, encompassing regional value chains (RVCs), are important feature of the global economy, and are important drivers of world trade. The economies would support policies to allow firms of all sizes, including small-and-medium-sized enterprises (SMEs), in countries with different developing levels to participate in and fully utilise GVCs, the statement said. G20 members would continue to enhance capacity building to promote inclusive and coordinated GVCs and seek to develop and implement initiatives to assist developing countries, particularly LICs and SMEs in the areas that matter most to GVCs, it said. Such initiatives might include appropriate infrastructure, technology support, access to credit, supply chain connectivity, agriculture, innovation and e-commerce, skills training and responsible business conduct, it said. Meanwhile, G20 members with capacity to do so would continue to help developing countries ‘and SMEs’ ability to adopt and comply with relevant national and international standards, technical regulations, and conformity assessment procedures. G20 members would also facilitate developing countries and SMEs access to information on trade and investment opportunities, and provide further information to help them participate in GVCs and move up the value chain, it said.

SOURCE: The Financial Express

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Cambodia will be able to be shipped travel goods to the US duty free

The United States, under the new US Generalized System of Preference (GSP) expands duty-free access to travel goods such as luggage, backpacks, handbags and wallet made in Cambodia, a major expansion of trade preferences for the country, according to the US Embassy in Phnom Penh. Now, Cambodia will be able to be shipped its travel goods to the US duty free. President of the Garment Manufacturers Association of Cambodia Van Sou Ieng said that the country is currently home to 15 factories producing travel goods and exports 50 million USD worth of such products to the US market every year U.S. Ambassador William Heidt in a joint press conference with Cambodian Minister of Commerce Pan Sorasak said that the duty-free offer will open up a new market for Cambodian exporters while creating thousands of jobs for Cambodians. He encouraged Cambodian producers to take the advantage to diversify the country’s economic base, spur economic growth and alleviate poverty. Pan Sorasak said that the offer will be a good opportunity for Cambodia to further the development of the garment and textile industry.

SOURCE: Yarns&Fibers

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Japanese apparel makers will continue doing business in Bangladesh

Amid rising labor costs, Japanese garment industry is shifting production from China to Bangladesh and other Asian countries. Japanese clothing makers will continue doing business in Bangladesh, as it remains important both in terms of sales and production, although they will boost security after last Friday's terrorist attack in Dhaka. Fast Retailing, the operator of the Uniqlo casualwear chain, is one of the major Japanese companies that are doing business in Bangladesh. The Japanese company established a joint venture with Grameen Bank's local unit to operate stores and set up a production office to supervise factories. Fast Retailing has been boosting production in Bangladesh, alongside Sweden's H&M Hennes & Mauritz and Inditex, the Spanish owner of Zara. These so-called "fast-fashion" brands are supported by their Bangladesh operations. According to the Japan Textiles Importers Association, Japan imported 65% of its textile products from China in 2015. China at one time accounted for nearly 80% of textile imports, but the percentage has been declining gradually due to rising labor costs, among other reasons. Now imports from countries like Vietnam and Indonesia are rising. Although Bangladesh only accounts for 2.3% of total imports, it grows at an annual pace of about 20-40%. Some Japanese companies that have client plants in Bangladesh, such as casual clothing retailer Adastria and men's clothing store Aoki, said that they will keep their policies unchanged. Fiber maker Toray Industries is also operating its joint venture plant in the north as usual. Toray representative said that they are not considering scaling back operations immediately, given its favorable environment for exporting to Western markets. He further added that Bangladesh is one of their important production bases. Bangladesh has seen its exports grow rapidly in recent years as a production base for Japanese and Western companies.

SOURCE: Yarns&Fibers

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Pakistan-PEW seeks more relaxations for textile sector

The Pakistan Economy Watch (PEW) on Sunday lauded the government’s move to provide facility of zero rating to the textile sector, but at the same time termed it insufficient in the current scenario. In a statement issued here, PEW President Dr Murtaza Mughal asked the government for more relaxations so that Pakistan could regain its position in the international market. “The $14 billion textile industry which is playing a critical role in the national economy is crumbling due to multiple reasons, which warrant immediate government intervention,” he added. He said that energy crisis, incoherent policies, regional competition, undue taxation etc.had taken a toll on this industry that provided jobs to 3.5 million people. Mughal said that 57 percent of country’s exports were due to the textile industry; its share in manufacturing stood at 46 percent while it employed 38 percent of urban labour. “The share of textile in the GDP is nine percent, which will shrink, creating problems for everyone including millions of farmers depending on the cotton crop,” he said, and added, “Other countries are providing subsidies to their textile sector and frequently devalue currency to get a foothold in international market which has left local sector unattractive for the investors. He called upon the government to review exchange and monetary policies and refund mechanism as the textile sector was awaiting refunds worth one trillion and ten billion rupees for long, resulting in severe liquidity problems. “Around 33 percent textile mills have been closed down, depriving one million people of their jobs, and if the situation remains unchanged more bad news will follow,” Mughal warned.

Source: The Global textiles

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